Buying Used Cars In Australia - 10 Steps To Avoid Buying A Lemon

Buying a used car in Australia has a lot ofhours are, weekdays from 8:30am to 5:30pm and
advantages over a new car, but it may haveweekends from 9am to 5pm.
defects the seller hasn't told you about. Follow ourThe owner must provide you with a pink slip
quick ten point guide to avoid buying a lemon.inspection report current for the month.
1. Buy the right used car for your needs6. Take it for a test drive
Besides budget you also need to consider safety,Take the car for a drive on a quiet road and
security, makes and models you like, fuellisten for engine noise. Does it brake, steer and
consumption versus performance, runninghandle correctly? Is the suspension ok? Try a
servicing costs, travel distances, carryingreverse park, hill start and a 3 point turn. Brake
passengers, power for trailers or boats, parking,hard once or twice on an isolated section of the
space for work or sports gear.road at around 40 kph. Did it handle correctly or
2. Consider other "fringe" costsveer to one side?
Above the cost of the car bought from the seller,7. Negotiate the best deal
there is also stamp duty, registration, transferRemember that while you still have the money in
fee, and insurance. Factor these costs in beforeyour pocket, you're the boss! Do your homework
you go shopping for a used car that you canbefore you set out to purchase a used car and
afford.know what the average prices are. If they are in
3. Do I buy it privately, from a dealer, online or atthe ball park, offer a price slightly lower and
an auction?mention that you have seen better deals
Private - Advantages are that it is generallyelsewhere if this is correct. If they don't budge,
cheaper as there are no overheads and you canmention the costs for repair and wait for them to
meet and discuss the history with the owner.talk. Depending on how much you want the car,
Disadvantages are that there is no warranty, nomake a slightly higher offer or ask if they could
security of title, no legal comeback if you buy athrow in something like new tyres for free. If
lemon, may have extensive concealed damage orthey still won't budge, walk away. There are
repair work.plenty of other cars in the market and it is likely
Dealer - Advantages are that if there is moneythere are better deals nearby.
owing or is stolen, you have recourse against the8. Paying the money
dealer, you get a warranty, you may be offeredTaking cash is a great way to negotiate as the
a trade in on you old car, you have a "cooling off"sight of a wad of notes may be an incentive for
period if you are obtaining finance to buy a useda cash strapped seller. It may also be a security
car from a company linked to the dealer and therisk, so if you are unsure, pay by a bank cheque.
car is more likely to be in a road worthy conditionIf you can't raise the money from your own
before being offered for sale.reserves, shop around for the best finance deal
Disadvantages are that dealers are often moreonline. A good resource for borrowing money at
expensive, you are likely to get a poorer price asthe best rate is Always get a receipt from the
a trade in on your old car, and some dealers canseller with a statement that the vehicle is
be very pushy.unencumbered by any loans or finance. Talk to
Online - Advantages are that you don't have toyour accountant about the best way to purchase
travel, plenty of information is available on pricing,the vehicle if it is to be used for your business.
you sometimes get colour photos of the usedThey may advise you that a chattel mortgage is
car, you can buy in most areas of Australia, andoften the best way to borrow for this purpose,
you don't have to negotiate face to face.depending on your circumstances.
Disadvantages are you may not be able to see9. Transfer the registration
and test drive the vehicle, particularly if you areOnce the sale has been agreed on, the
buying interstate.registration must be transferred to the new
Auctions - Advantages are that they may beowner. Make sure the seller gives you the pink slip
cheaper and have a guarantee of titleand completes the disposal notice, then take them
Disadvantages are that it may be subject to anto the R.T.A. and pay for the transfer.
auction fee, may also have to re-register the carInstructions on how to do this are on the reverse
and get a roadworthy certificate, there is noof the registration papers.
warranty, can't test drive, no legal comeback if10. Before you drive away
you buy a lemon.Make sure you get all the keys for the car
4. Take someone with you and get an inspection.(ignition keys with transformers are expensive to
Two pairs of eyes and ears are better than oneduplicate). Get the service book, owner's manual
and it helps strengthen your negotiations if youand log book.
have someone on your side, particularly if theyIf there's an alarm, find out how to de-activate it.
know more about cars than you do. PreferablyIs there a hidden ignition switch? Ask the owner
take along a mechanic or pay for an inspection. Itor dealer if there is anything else to know about
usually saves you a lot of time and heartache andyour new used car. You may be pleasantly or
is well worth the money. A qualified person willunpleasantly surprised at the response!
identify poor repairs and rust, faulty electricalHandy phone numbers and online details
wiring, exhaust, engine noises, tyres wheel andNRMA Vehicle Inspections
brake faults, car interior linings, seat belts and13 11 22
window operation.Get a thorough report on the car's mechanics and
5. Check the ownershipcondition from our experts at NRMA. Vehicle
In NSW Australia call R.E.V.S. REVS stands for theInspection bookings can be made seven days a
Register of Encumbered Vehicles. It is a statutoryweek, between 7 am and 10 pm for Sydney, the
public register which assists the general public, theCentral Coast, Newcastle, Wollongong and
finance sector and the motor trade. REVS is aCanberra. In country areas, phone 13 11 22 for
business service provided by the NSW Office ofyour nearest NRMA inspection service.
Fair Trading which can tell you if a motor vehicleRTA
or boat you are thinking of buying is carrying a132 213
debt. In order to do a REVS check you mustCheck for stolen parts, that the registration is
supply :current and that the seller is the registered owner.
1. Registration Number if vehicle is registeredVisit the RTA website or e-mail the RTA.
2. VIN or chassis number.gov.au
3. Engine numberREVS
To ensure the accuracy of the vehicle you should1800 424 988 or (02) 9633 6333
obtain the details from the vehicle and compareCheck no money is owed on the car. Have the
them with the details on the registration papers.Certificate of Registration handy when you call.
For a fee of $12.00 a REVS Search Certificate,Visit the REVS website [ or e-mail
which gives you conditional legal protection againstmerce.nsw.gov.au
repossession due to the previous owner's unpaidNRMA Insurance
debt, is available to you for purchase online. You132 132
can also purchase a certificate from the REVS callGet insurance cover before you drive away. Call
centre on (02) 9633 6333 (Sydney) or (1800)NRMA Insurance 7am-10pm, seven days a week.
424 988 (Country) 7 days a week. Call centre